EX-99.1 2 exhibit991earningsrelease1.htm EX-99.1 Document

Exhibit 99.1
NEWS
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CONTACT:     Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION
REPORTS FOURTH QUARTER AND 2022 RESULTS
(2022 Loan Growth of 16.0% (excluding PPP1 loans))

SOUDERTON, Pa., January 25, 2023 - Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended December 31, 2022 was $23.8 million, or $0.81 diluted earnings per share, compared to net income of $17.4 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2021.

One-Time Items
The financial results for the quarter included bank owned life insurance ("BOLI") death benefit claims of $526 thousand, which represented $0.02 diluted earnings per share. Restructuring charges of $184 thousand were recognized in the fourth quarter related to the consolidation of two financial centers.

Loans
Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans1, increased $842.8 million, or 16.0%, from December 31, 2021, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings. Gross loans and leases, excluding PPP loans, increased $274.0 million, or 18.8% (annualized), from September 30, 2022, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.
1 Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


Deposits
Total deposits decreased $151.3 million, or 2.5%, from December 31, 2021, primarily due to decreases in commercial, consumer and public funds deposits partially offset by an increase in brokered deposits. Total deposits increased $116.8 million, or 8.0% (annualized), from September 30, 2022, primarily due to increases in commercial, consumer and brokered deposits partially offset by decreases in public funds deposits.

Net Interest Income and Margin
Net interest income of $61.9 million for the three months ended December 31, 2022 increased $3.7 million, or 6.3%, from the three months ended September 30, 2022, and $14.4 million, or 30.3%, from the three months ended December 31, 2021. The increase in net interest income for the three months ended December 31, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity of the Corporation's balance sheet, offset by an increase in costs of funds.

Net interest margin, on a tax-equivalent basis, was 3.76% for the fourth quarter of 2022, compared to 3.67% for the third quarter of 2022 and 2.86% for the fourth quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended December 31, 2022 compared to one basis point for the quarter ended September 30, 2022 and 43 basis points for the quarter ended December 31, 2021. PPP loans had no impact on net interest margin for the quarters ended December 31, 2022 and September 30, 2022 and had a favorable impact on net interest margin of eight basis points for the quarter ended December 31, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.77% for the quarter ended December 31, 2022 compared to 3.68% for the quarter ended September 30, 2022 and 3.21% for the quarter ended December 31, 2021.

Noninterest Income
Noninterest income for the quarter ended December 31, 2022 was $20.5 million, an increase of $1.3 million, or 6.6%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $700 thousand, or 14.3%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase was primarily due to a $1.2 million adjustment in the quarter for previously unrecorded revenue of which $815 thousand related to the first nine months of 2022. This adjustment was partially offset by decreased income driven by reduced assets under management due to market volatility. Insurance commission and fee income increased $698 thousand, or 18.7%, for the quarter ended December 31, 2022 compared to


the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.

Other income increased $1.2 million, or 114.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year due to a $1.1 million increase in interest rate swap income.

BOLI increased $511 thousand, or 71.1%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to death benefit claims as previously discussed.

Net gain on mortgage banking activities decreased $2.1 million, or 82.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of gain on sale margins.

Noninterest Expense
Noninterest expense for the quarter ended December 31, 2022 was $47.3 million, an increase of $4.0 million, or 9.2%, from the comparable period in the prior year. The results for the three months ended December 31, 2022 included approximately $434 thousand in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to personalize experiences and seamlessly deliver existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $1.7 million, or 6.0%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western Pennsylvania, and annual merit increases.

Data processing expenses increased $684 thousand, or 20.4%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology, general price increases, and $206 thousand in support of the previously discussed digital transformation initiative for the respective period.

Restructuring charges increased $184 thousand for the quarter ended December 31, 2022 compared to the comparable period in the prior year as previously discussed.

Other expense increased $1.2 million, or 21.3%, for the quarter compared to the comparable period in the prior year primarily due to increases in travel and entertainment expenses of $228 thousand for the quarter and $430 thousand of fraud losses.


Tax Provision
The effective income tax rate was 19.6% for the year ended December 31, 2022, compared to an effective income tax rate of 19.7% for the year ended December 31, 2021. The effective tax rate for the year ended December 31, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $33.5 million at December 31, 2022, compared to $33.0 million at September 30, 2022 and $34.0 million at December 31, 2021.

Net loan and lease charge-offs were $908 thousand and $1.2 million for the three months ended December 31, 2022 and September 30, 2022, respectively, compared to net loan and lease recoveries of $243 thousand for the three months ended December 31, 2021. Net loan and lease charge-offs were $3.9 million and $213 thousand for the year ended December 31, 2022 and December 31, 2021, respectively.

The provision for credit losses was $5.4 million for the three months ended December 31, 2022 compared to a provision for credit losses of $3.6 million and $1.4 million for the three months ended September 30, 2022 and December 31, 2021, respectively. The provision for credit losses was $12.2 million for the year ended December 31, 2022 compared to a reversal of provision for credit losses of $10.1 million for the comparable period in the prior year. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.29% at December 31, 2022 compared to 1.28% at September 30, 2022 and 1.35% at December 31, 2021.

Dividend
On January 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 22, 2023 to shareholders of record as of February 8, 2023.

Conference Call
Univest will host a conference call to discuss fourth quarter 2022 results on Thursday, January 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=789ec9e7&confId=45853. The general public can access the call by dialing 1-844-200-6205; using Access Code 610261. A replay of the conference call will be available through February 23, 2023 by dialing 1-866-813-9403; using Access Code: 720149.



About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.2 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory, accounting or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) potential recessionary conditions and/or (12) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2022
(Dollars in thousands)
Balance Sheet (Period End)12/31/20229/30/20226/30/20223/31/202212/31/2021
ASSETS
Cash and due from banks $84,176 $65,859 $59,590 $57,307 $49,202 
Interest-earning deposits with other banks 68,623 47,451 35,187 716,474 840,948 
Cash and cash equivalents152,799 113,310 94,777 773,781 890,150 
Investment securities held-to-maturity154,727 159,170 159,808 166,339 176,983 
Investment securities available for sale, net of allowance for credit losses350,256 347,479 351,382 349,994 317,007 
Investments in equity securities2,579 2,994 2,934 2,569 2,999 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost33,841 29,475 29,116 26,330 28,186 
Loans held for sale5,037 9,087 8,352 14,521 21,600 
Loans and leases held for investment6,123,230 5,849,259 5,661,777 5,400,786 5,310,017 
Less: Allowance for credit losses, loans and leases (79,004)(74,929)(72,011)(68,286)(71,924)
Net loans and leases held for investment6,044,226 5,774,330 5,589,766 5,332,500 5,238,093 
Premises and equipment, net 50,939 50,533 50,080 50,429 56,882 
Operating lease right-of-use assets30,059 30,654 30,929 30,498 30,407 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization11,384 11,650 11,728 11,784 11,848 
Bank owned life insurance120,297 120,035 120,103 119,398 118,699 
Accrued interest and other assets 90,362 83,170 76,328 54,087 54,057 
Total assets $7,222,016 $6,907,397 $6,700,813 $7,107,740 $7,122,421 
LIABILITIES
Noninterest-bearing deposits$2,037,562 $1,968,422 $2,062,538 $2,136,467 $2,065,423 
Interest-bearing deposits:3,866,263 3,818,554 3,500,510 3,911,465 3,989,701 
Total deposits 5,903,825 5,786,976 5,563,048 6,047,932 6,055,124 
Short-term borrowings197,141 80,711 97,606 18,976 20,106 
Long-term debt 95,000 95,000 95,000 95,000 95,000 
Subordinated notes 148,260 99,107 99,030 98,952 98,874 
Operating lease liabilities33,153 33,718 33,951 33,566 33,453 
Accrued expenses and other liabilities 68,137 57,698 48,253 39,459 46,070 
Total liabilities 6,445,516 6,153,210 5,936,888 6,333,885 6,348,627 
SHAREHOLDER'S EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued157,784 157,784 157,784 157,784 157,784 
Additional paid-in capital300,808 299,791 298,800 297,945 299,181 
Retained earnings428,637 410,942 396,295 389,332 375,124 
Accumulated other comprehensive loss, net of tax benefit(62,104)(64,985)(42,781)(31,909)(16,353)
Treasury stock, at cost(48,625)(49,345)(46,173)(39,297)(41,942)
Total shareholders’ equity776,500 754,187 763,925 773,855 773,794 
Total liabilities and shareholders’ equity$7,222,016 $6,907,397 $6,700,813 $7,107,740 $7,122,421 
For the three months ended,For the twelve months ended,
Balance Sheet (Average)12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Assets$7,019,381 $6,797,466 $6,962,401 $7,047,980 $7,088,289 $6,956,292 $6,655,443 
Investment securities, net of allowance for credit losses505,717 517,335 515,741 522,128 469,588 515,192 406,463 
Loans and leases, gross5,979,581 5,752,119 5,520,580 5,344,698 5,255,279 5,651,265 5,322,475 
Deposits5,837,823 5,645,291 5,903,173 5,984,815 6,041,798 5,841,832 5,591,195 
Shareholders' equity767,192 773,099 771,410 774,358 762,334 771,499 734,456 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
December 31, 2022
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial, financial and agricultural$1,086,781 $1,052,733 $1,028,354 $932,485 $956,396 
Paycheck Protection Program2,147 2,207 5,358 10,298 31,748 
Real estate-commercial3,027,955 2,936,204 2,870,286 2,816,737 2,718,535 
Real estate-construction381,811 329,915 319,449 285,083 283,918 
Real estate-residential secured for business purpose478,254 443,837 419,652 412,486 409,900 
Real estate-residential secured for personal purpose730,395 685,771 629,144 568,735 540,566 
Real estate-home equity secured for personal purpose176,699 175,843 168,536 160,134 158,909 
Loans to individuals27,873 26,679 27,061 26,249 25,504 
Lease financings211,315 196,070 193,937 188,579 184,541 
Total loans and leases held for investment, net of deferred income6,123,230 5,849,259 5,661,777 5,400,786 5,310,017 
Less: Allowance for credit losses, loans and leases(79,004)(74,929)(72,011)(68,286)(71,924)
Net loans and leases held for investment$6,044,226 $5,774,330 $5,589,766 $5,332,500 $5,238,093 
Asset Quality Data (Period End)12/31/20229/30/20226/30/20223/31/202212/31/2021
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases$13,353 $13,620 $13,355 $30,876 $33,210 
Accruing loans and leases 90 days or more past due875 416 2,784 274 498 
Accruing troubled debt restructured loans and leases49 50 50 51 51 
Total nonperforming loans and leases14,277 14,086 16,189 31,201 33,759 
Other real estate owned19,258 18,960 18,604 279 279 
Total nonperforming assets$33,535 $33,046 $34,793 $31,480 $34,038 
Nonaccrual loans and leases / Loans and leases held for investment0.22 %0.23 %0.24 %0.57 %0.63 %
Nonperforming loans and leases / Loans and leases held for investment0.23 %0.24 %0.29 %0.58 %0.64 %
Nonperforming assets / Total assets0.46 %0.48 %0.52 %0.44 %0.48 %
Allowance for credit losses, loans and leases$79,004 $74,929 $72,011 $68,286 $71,924 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.29 %1.28 %1.27 %1.26 %1.35 %
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)1.29 %1.28 %1.27 %1.27 %1.36 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment591.66 %550.14 %539.21 %221.16 %216.57 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment553.37 %531.94 %444.81 %218.86 %213.05 %
For the three months ended,For the twelve months ended,
12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Net loan and lease charge-offs (recoveries)$908 $1,196 $1,715 $76 $(243)$3,895 $213 
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases0.06 %0.08 %0.12 %0.01 %(0.02)%0.07 %— %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2022
(Dollars in thousands, except per share data)
For the three months ended,For the twelve months ended,
For the period:12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Interest income$77,401 $66,877 $56,717 $51,198 $52,262 $252,193 $209,731 
Interest expense15,485 8,627 5,246 4,538 4,737 33,896 21,348 
Net interest income61,916 58,250 51,471 46,660 47,525 218,297 188,383 
Provision (reversal of provision) for credit losses5,416 3,558 6,674 (3,450)1,392 12,198 (10,132)
Net interest income after provision for credit losses56,500 54,692 44,797 50,110 46,133 206,099 198,515 
Noninterest income:
Trust fee income1,808 1,835 1,998 2,102 2,086 7,743 8,403 
Service charges on deposit accounts1,575 1,522 1,574 1,504 1,486 6,175 5,504 
Investment advisory commission and fee income5,585 4,199 4,812 5,152 4,885 19,748 18,936 
Insurance commission and fee income4,424 4,442 4,629 5,570 3,726 19,065 16,357 
Other service fee income3,236 3,124 3,309 2,756 2,759 12,425 10,275 
Bank owned life insurance income1,230 1,153 705 699 719 3,787 3,981 
Net gain on sales of investment securities— — — 30 5 30 145 
Net gain on mortgage banking activities436 817 1,230 1,929 2,518 4,412 15,141 
Other income2,164 867 741 728 1,008 4,500 4,482 
Total noninterest income20,458 17,959 18,998 20,470 19,192 77,885 83,224 
Noninterest expense:
Salaries, benefits and commissions29,028 29,400 29,133 28,245 27,374 115,806 104,191 
Net occupancy2,551 2,504 2,422 2,716 2,477 10,193 10,397 
Equipment977 968 977 982 985 3,904 3,899 
Data processing4,039 3,901 3,708 3,567 3,355 15,215 12,743 
Professional fees1,829 2,521 2,844 2,138 1,750 9,332 7,687 
Marketing and advertising739 605 693 425 683 2,462 2,063 
Deposit insurance premiums708 662 812 893 698 3,075 2,712 
Intangible expenses301 309 342 341 267 1,293 979 
Restructuring charges184 — — — — 184 — 
Other expense6,970 5,795 6,440 6,105 5,746 25,310 22,738 
Total noninterest expense47,326 46,665 47,371 45,412 43,335 186,774 167,409 
Income before taxes29,632 25,986 16,424 25,168 21,990 97,210 114,330 
Income tax expense5,796 5,185 3,258 4,851 4,578 19,090 22,529 
Net income$23,836 $20,801 $13,166 $20,317 $17,412 $78,120 $91,801 
Net income per share:
Basic$0.82 $0.71 $0.45 $0.69 $0.59 $2.66 $3.12 
Diluted$0.81 $0.71 $0.45 $0.68 $0.59 $2.64 $3.11 
Dividends declared per share$0.21 $0.21 $0.21 $0.20 $0.20 $0.83 $0.80 
Weighted average shares outstanding29,251,293 29,290,829 29,490,154 29,542,467 29,471,304 29,392,606 29,402,845 
Period end shares outstanding29,271,915 29,242,451 29,365,775 29,636,425 29,500,542 29,271,915 29,500,542 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2022
For the three months ended,For the twelve months ended,
Profitability Ratios (annualized)12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Return on average assets1.35 %1.21 %0.76 %1.17 %0.97 %1.12 %1.38 %
Return on average assets, excluding restructuring charges (1)1.36 %1.21 %0.76 %1.17 %0.97 %1.13 %1.38 %
Return on average shareholders' equity12.33 %10.67 %6.85 %10.64 %9.06 %10.13 %12.50 %
Return on average shareholders' equity, excluding restructuring charges (1)12.40 %10.67 %6.85 %10.64 %9.06 %10.14 %12.50 %
Return on average tangible common equity (1)(3)16.23 %14.06 %9.10 %14.04 %11.93 %13.36 %16.55 %
Return on average tangible common equity, excluding restructuring charges (1)(3)16.33 %14.06 %9.10 %14.04 %11.93 %13.39 %16.55 %
Net interest margin (FTE)3.76 %3.67 %3.19 %2.89 %2.86 %3.38 %3.06 %
Efficiency ratio (2)56.9 %60.6 %66.6 %67.0 %64.3 %62.4 %60.9 %
Efficiency ratio, excluding restructuring charges (1)(2)56.7 %60.6 %66.6 %67.0 %64.3 %62.4 %60.9 %
Capitalization Ratios
Dividends declared to net income25.8 %29.6 %47.1 %29.1 %33.9 %31.2 %25.6 %
Shareholders' equity to assets (Period End)10.75 %10.92 %11.40 %10.89 %10.86 %10.75 %10.86 %
Tangible common equity to tangible assets (1)8.49 %8.55 %8.97 %8.58 %8.56 %8.49 %8.56 %
Common equity book value per share$26.53 $25.79 $26.01 $26.11 $26.23 $26.53 $26.23 
Tangible common equity book value per share (1)$20.42 $19.67 $19.91 $20.06 $20.14 $20.42 $20.14 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.81 %9.87 %9.45 %9.35 %9.13 %9.81 %9.13 %
Common equity tier 1 risk-based capital ratio10.37 %10.51 %10.62 %11.07 %11.08 %10.37 %11.08 %
Tier 1 risk-based capital ratio10.37 %10.51 %10.62 %11.07 %11.08 %10.37 %11.08 %
Total risk-based capital ratio13.67 %13.10 %13.23 %13.73 %13.77 %13.67 %13.77 %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended,
Tax Equivalent BasisDecember 31, 2022September 30, 2022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$57,059 $487 3.39 %$49,476 $252 2.02 %
U.S. government obligations— — — 565 3 2.11 
Obligations of state and political subdivisions*2,266 17 2.98 2,308 18 3.09 
Other debt and equity securities503,451 3,316 2.61 514,462 3,010 2.32 
Federal Home Loan Bank, Federal Reserve Bank and other stock29,401 493 6.65 28,368 435 6.08 
Total interest-earning deposits, investments and other interest-earning assets592,177 4,313 2.89 595,179 3,718 2.48 
Commercial, financial, and agricultural loans1,004,940 14,460 5.71 977,549 11,996 4.87 
Paycheck Protection Program loans2,181 11 2.00 3,754 40 4.23 
Real estate—commercial and construction loans3,223,822 39,459 4.86 3,105,821 34,100 4.36 
Real estate—residential loans1,335,220 14,340 4.26 1,256,509 12,492 3.94 
Loans to individuals26,772 401 5.94 27,197 381 5.56 
Municipal loans and leases*233,684 2,433 4.13 235,433 2,432 4.10 
Lease financings152,962 2,416 6.27 145,856 2,195 5.97 
     Gross loans and leases5,979,581 73,520 4.88 5,752,119 63,636 4.39 
          Total interest-earning assets6,571,758 77,833 4.70 6,347,298 67,354 4.21 
Cash and due from banks56,428 62,930 
Allowance for credit losses, loans and leases(75,390)(72,355)
Premises and equipment, net50,803 50,476 
Operating lease right-of-use assets30,413 30,740 
Other assets385,369 378,377 
      Total assets$7,019,381 $6,797,466 
Liabilities:
Interest-bearing checking deposits$924,012 $2,746 1.18 %$881,395 $1,251 0.56 %
Money market savings1,365,502 7,670 2.23 1,246,795 3,709 1.18 
Regular savings1,045,261 492 0.19 1,086,191 302 0.11 
Time deposits433,010 1,586 1.45 416,539 1,189 1.13 
Total time and interest-bearing deposits3,767,785 12,494 1.32 3,630,920 6,451 0.70 
Short-term borrowings101,126 852 3.34 104,453 524 1.99 
Long-term debt95,000 324 1.35 95,000 324 1.35 
Subordinated notes124,250 1,815 5.80 99,065 1,328 5.32 
     Total borrowings320,376 2,991 3.70 298,518 2,176 2.89 
     Total interest-bearing liabilities4,088,161 15,485 1.50 3,929,438 8,627 0.87 
Noninterest-bearing deposits2,070,038 2,014,371 
Operating lease liabilities33,492 33,786 
Accrued expenses and other liabilities60,498 46,772 
     Total liabilities6,252,189 6,024,367 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,121 299,135 
Retained earnings and other equity309,287 316,180 
     Total shareholders' equity767,192 773,099 
     Total liabilities and shareholders' equity$7,019,381 $6,797,466 
Net interest income$62,348 $58,727 
Net interest spread3.20 3.34 
Effect of net interest-free funding sources0.56 0.33 
Net interest margin3.76 %3.67 %
Ratio of average interest-earning assets to average interest-bearing liabilities160.75 %161.53 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment.
Net interest income includes net deferred costs of $(516) thousand and $(498) thousand for the three months ended December 31, 2022 and September 30, 2022.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended December 31, 2022 and September 30, 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended December 31,
Tax Equivalent Basis20222021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$57,059 $487 3.39 %$914,287 $370 0.16 %
U.S. government obligations— — — 6,999 37 2.10 
Obligations of state and political subdivisions*2,266 17 2.98 2,334 19 3.23 
Other debt and equity securities503,451 3,316 2.61 460,255 1,845 1.59 
Federal Home Loan Bank, Federal Reserve Bank and other stock29,401 493 6.65 28,402 375 5.24 
Total interest-earning deposits, investments and other interest-earning assets592,177 4,313 2.89 1,412,277 2,646 0.74 
Commercial, financial, and agricultural loans1,004,940 14,460 5.71 869,471 7,022 3.20 
Paycheck Protection Program loans2,181 11 2.00 53,745 1,568 11.57 
Real estate—commercial and construction loans3,223,822 39,459 4.86 2,826,720 26,669 3.74 
Real estate—residential loans1,335,220 14,340 4.26 1,107,911 10,165 3.64 
Loans to individuals26,772 401 5.94 26,462 249 3.73 
Municipal loans and leases*233,684 2,433 4.13 245,038 2,515 4.07 
Lease financings152,962 2,416 6.27 125,932 1,951 6.15 
     Gross loans and leases5,979,581 73,520 4.88 5,255,279 50,139 3.79 
          Total interest-earning assets6,571,758 77,833 4.70 6,667,556 52,785 3.14 
Cash and due from banks56,428 54,958 
Allowance for credit losses, loans and leases(75,390)(71,020)
Premises and equipment, net50,803 56,087 
Operating lease right-of-use assets30,413 31,048 
Other assets385,369 349,660 
      Total assets$7,019,381 $7,088,289 
Liabilities:
Interest-bearing checking deposits$924,012 $2,746 1.18 %$939,478 $493 0.21 %
Money market savings1,365,502 7,670 2.23 1,616,890 968 0.24 
Regular savings1,045,261 492 0.19 997,814 253 0.10 
Time deposits433,010 1,586 1.45 487,434 1,370 1.12 
Total time and interest-bearing deposits3,767,785 12,494 1.32 4,041,616 3,084 0.30 
Short-term borrowings101,126 852 3.34 14,144 1 0.03 
Long-term debt95,000 324 1.35 95,000 325 1.36 
Subordinated notes124,250 1,815 5.80 98,833 1,327 5.33 
     Total borrowings320,376 2,991 3.70 207,977 1,653 3.15 
     Total interest-bearing liabilities4,088,161 15,485 1.50 4,249,593 4,737 0.44 
Noninterest-bearing deposits2,070,038 2,000,182 
Operating lease liabilities33,492 34,114 
Accrued expenses and other liabilities60,498 42,066 
     Total liabilities6,252,189 6,325,955 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,121 298,508 
Retained earnings and other equity309,287 306,042 
     Total shareholders' equity767,192 762,334 
     Total liabilities and shareholders' equity$7,019,381 $7,088,289 
Net interest income$62,348 $48,048 
Net interest spread3.20 2.70 
Effect of net interest-free funding sources0.56 0.16 
Net interest margin3.76 %2.86 %
Ratio of average interest-earning assets to average interest-bearing liabilities160.75 %156.90 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(516) thousand and $707 thousand for the three months ended December 31, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended December 31, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Twelve Months Ended December 31,
Tax Equivalent Basis20222021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$325,875 $1,920 0.59 %$476,351 $661 0.14 %
U.S. government obligations1,929 40 2.07 6,999 144 2.06 
Obligations of state and political subdivisions*2,302 71 3.08 5,702 206 3.61 
Other debt and equity securities510,961 11,392 2.23 393,762 5,992 1.52 
Federal Home Loan Bank, Federal Reserve Bank and other stock27,784 1,627 5.86 26,844 1,417 5.28 
Total interest-earning deposits, investments and other interest-earning assets868,851 15,050 1.73 909,658 8,420 0.93 
Commercial, financial, and agricultural loans955,816 43,064 4.51 840,133 28,142 3.35 
Paycheck Protection Program loans7,939 797 10.04 281,484 15,032 5.34 
Real estate—commercial and construction loans3,060,689 127,906 4.18 2,734,259 101,692 3.72 
Real estate—residential loans1,219,275 47,472 3.89 1,077,952 40,045 3.71 
Loans to individuals26,642 1,325 4.97 26,062 1,018 3.91 
Municipal loans and leases*236,858 9,703 4.10 247,396 10,147 4.10 
Lease financings144,046 8,791 6.10 115,189 7,363 6.39 
     Gross loans and leases5,651,265 239,058 4.23 5,322,475 203,439 3.82 
          Total interest-earning assets6,520,116 254,108 3.90 6,232,133 211,859 3.40 
Cash and due from banks57,196 55,724 
Allowance for credit losses, loans and leases(72,069)(74,943)
Premises and equipment, net51,362 55,875 
Operating lease right-of-use assets30,443 32,758 
Other assets369,244 353,896 
      Total assets$6,956,292 $6,655,443 
Liabilities:
Interest-bearing checking deposits$884,656 $5,010 0.57 %$850,713 $2,007 0.24 %
Money market savings1,389,226 13,835 1.00 1,366,762 3,574 0.26 
Regular savings1,056,019 1,269 0.12 983,752 1,114 0.11 
Time deposits443,845 5,308 1.20 498,638 6,178 1.24 
Total time and interest-bearing deposits3,773,746 25,422 0.67 3,699,865 12,873 0.35 
Short-term borrowings60,468 1,389 2.30 16,552 8 0.05 
Long-term debt95,000 1,287 1.35 96,562 1,318 1.36 
Subordinated notes105,356 5,798 5.50 137,896 7,149 5.18 
     Total borrowings260,824 8,474 3.25 251,010 8,475 3.38 
     Total interest-bearing liabilities4,034,570 33,896 0.84 3,950,875 21,348 0.54 
Noninterest-bearing deposits2,068,086 1,891,330 
Operating lease liabilities33,508 36,001 
Accrued expenses and other liabilities48,629 42,781 
     Total liabilities6,184,793 5,920,987 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,121 297,189 
Retained earnings and other equity314,594 279,483 
     Total shareholders' equity771,499 734,456 
     Total liabilities and shareholders' equity$6,956,292 $6,655,443 
Net interest income$220,212 $190,511 
Net interest spread3.06 2.86 
Effect of net interest-free funding sources0.32 0.20 
Net interest margin3.38 %3.06 %
Ratio of average interest-earning assets to average interest-bearing liabilities161.61 %157.74 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(1.8) million and $8.7 million for the twelve months ended December 31, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the twelve months ended December 31, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
December 31, 2022
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance (excl PPP)% of Commercial Loan Portfolio
CRE - Retail$440,112 8.8 %
Animal Production340,877 6.9 
CRE - Office292,740 5.9 
CRE - Multi-family277,157 5.6 
CRE - 1-4 Family Residential Investment266,423 5.3 
Hotels & Motels (Accommodation)191,735 3.9 
CRE - Industrial / Warehouse174,357 3.5 
Nursing and Residential Care Facilities169,443 3.4 
Education163,310 3.3 
Specialty Trade Contractors153,422 3.1 
Homebuilding (tract developers, remodelers)149,935 3.0 
Merchant Wholesalers, Durable Goods136,707 2.7 
Motor Vehicle and Parts Dealers122,291 2.5 
Credit Intermediation and Other Related Activities 114,124 2.3 
CRE - Mixed-Use - Residential109,812 2.2 
Crop Production91,597 1.8 
Administrative and Support Services79,600 1.6 
CRE - Mixed-Use - Commercial77,790 1.6 
Religious Organizations, Advocacy Groups74,980 1.5 
Wood Product Manufacturing74,913 1.5 
Rental and Leasing Services74,158 1.5 
Food Manufacturing73,755 1.5 
Food Services and Drinking Places68,056 1.4 
Merchant Wholesalers, Nondurable Goods63,539 1.3 
Personal and Laundry Services59,796 1.2 
Repair and Maintenance56,870 1.1 
Fabricated Metal Product Manufacturing55,546 1.1 
Miniwarehouse / Self-Storage55,543 1.1 
Amusement, Gambling, and Recreation Industries55,248 1.1 
Private Equity & Special Purpose Entities53,818 1.1 
Truck Transportation50,182 1.0 
Industries with >$50 million in outstandings$4,167,836 83.8 %
Industries with <$50 million in outstandings $806,965 16.2 %
Total Commercial Loans$4,974,801 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$730,395 
Real Estate-Home Equity Secured for Personal Purpose176,699 
Loans to Individuals27,873 
Lease Financings211,315 
Total Consumer Loans and Lease Financings$1,146,282 
Total$6,121,083 



Univest Financial Corporation
Non-GAAP Reconciliation
December 31, 2022
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
As of or for the three months ended,As of or for the twelve months ended,
(Dollars in thousands)12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Restructuring charges (a)$184 $— $— $— $— $184 $— 
Tax effect of restructuring charges(39)— — — — (39)— 
Restructuring charges, net of tax$145 $— $— $— $— $145 $— 
Net income$23,836 $20,801 $13,166 $20,317 $17,412 $78,120 $91,801 
Amortization of intangibles, net of tax238 244 270 269 211 1,021 773 
Net income before amortization of intangibles$24,074 $21,045 $13,436 $20,586 $17,623 $79,141 $92,574 
Shareholders' equity$776,500 $754,187 $763,925 $773,855 $773,794 $776,500 $773,794 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(3,251)(3,485)(3,678)(3,936)(4,210)(3,251)(4,210)
Tangible common equity$597,739 $575,192 $584,737 $594,409 $594,074 $597,739 $594,074 
Total assets$7,222,016 $6,907,397 $6,700,813 $7,107,740 $7,122,421 $7,222,016 $7,122,421 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(3,251)(3,485)(3,678)(3,936)(4,210)(3,251)(4,210)
Tangible assets$7,043,255 $6,728,402 $6,521,625 $6,928,294 $6,942,701 $7,043,255 $6,942,701 
Average shareholders' equity$767,192 $773,099 $771,410 $774,358 $762,334 $771,499 $734,456 
Average goodwill(175,510)(175,510)(175,510)(175,510)(173,553)(175,510)(172,810)
Average other intangibles (b)(3,355)(3,550)(3,791)(4,090)(2,696)(3,694)(2,338)
Average tangible common equity$588,327 $594,039 $592,109 $594,758 $586,085 $592,295 $559,308 
Loans and leases held for investment, gross$6,123,230 $5,849,259 $5,661,777 $5,400,786 $5,310,017 $6,123,230 $5,310,017 
Paycheck Protection Program ("PPP") loans (2,147)(2,207)(5,358)(10,298)(31,748)(2,147)(31,748)
Gross loans and leases, excluding PPP loans$6,121,083 $5,847,052 $5,656,419 $5,390,488 $5,278,269 $6,121,083 $5,278,269 
(a) Associated with the consolidation of two financial centers
(b) Amount does not include mortgage servicing rights